The market extended losses for the second straight day on May 12, dented by weak global cues. Private banks, IT, Metals and select FMCG stocks pulled the indices down.
The BSE Sensex declined 471.01 points or 0.96 percent to close at 48,690.80, while the NSE Nifty50 slipped 154.30 points or 1.04 percent to 14,696.50, and formed Bearish Belt Hold kind of pattern on the daily charts.
"A reasonable negative candle was formed on Wednesday with minor lower shadow. Technically, this pattern indicates a follow-through weakness in the market. The optimism created after the Tuesday upside recovery has been negated on Wednesday and Nifty closed below the low of previous candle at 14,771," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
He feels the short term trend of Nifty seems to have reversed down within a broader range movement. "There is a possibility of some more weakness in the coming sessions and we expect the recent swing low of 14,416 could be protected and the market could bounce from the lows in short term. Immediate support is placed at 14,620," Shetti said.
The broader markets also closed lower with the Nifty Midcap 100 and Smallcap 100 indices falling 0.81 percent and 0.59 percent, respectively.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 14,622.8, followed by 14,549.1. If the index moves up, the key resistance levels to watch out for are 14,797.1 and 14,897.7.
Nifty Bank
The Nifty Bank fell 419.90 points or 1.28 percent to 32,452.30 on May 12. The important pivot level, which will act as crucial support for the index, is placed at 32,287.16, followed by 32,122.03. On the upside, key resistance levels are placed at 32,682.56 and 32,912.83 levels.
Call option data
Maximum Call open interest of 28.85 lakh contracts was seen at 15,000 strike, which will act as a crucial resistance level in May series.
This is followed by 14,800 strike, which holds 21.60 lakh contracts, and 15,500 strike, which has accumulated 18.47 lakh contracts.
Call writing was seen at 14,800 strike, which added 7.32 lakh contracts, followed by 15,200 strike which added 2.99 lakh contracts and 15,000 strike which added 2.37 lakh contracts.
Call unwinding was seen at 15,500 strike, which shed 3.19 lakh contracts, followed by 14,500 strike which shed 27,900 contracts.
Put option data
Maximum Put open interest of 42.62 lakh contracts was seen at 14,000 strike, which will act as a crucial support level in the May series.
This is followed by 14,500 strike, which holds 24.74 lakh contracts, and 14,600 strike, which has accumulated 15.87 lakh contracts.
Put writing was seen at 14,700 strike, which added 2.36 lakh contracts, followed by 14,300 strike which added 1.76 lakh contracts and 13,900 strike which added 1.07 lakh contracts.
Put unwinding was seen at 14,500 strike which shed 5.47 lakh contracts, followed by 14,000 strike, which shed 2.21 lakh contracts, and 15,000 strike which shed 1.73 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
19 stocks saw long build-up
An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, here are the top 10 stocks in which a long build-up was seen.
54 stocks saw long unwinding
A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks in which long unwinding was seen.
62 stocks saw short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, here are the top 10 stocks in which a short build-up was seen.
24 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, here are the top 10 stocks in which short-covering was seen.
Bulk deals
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Results on May 14
Larsen & Toubro, Dr Reddy's Laboratories, Cipla, Aditya Birla Capital, Macrotech Developers, The Anup Engineering, Asian Star Company, Automotive Axles, Balkrishna Industries, BCPL Railway Infrastructure, Bharat Seats, Cholamandalam Financial Holdings, Deccan Gold Mines, DRC Systems India, Escorts, Gokaldas Exports, Greenpanel Industries, Hi-Klass Trading and Investment, HIL, Indigo Paints, Jindal Stainless, Just Dial, Kartik Investments Trust, Kesoram Industries, Menon Bearings, Mindspace Business Parks REIT, Monte Carlo Fashions, Oberoi Realty, Octal Credit Capital, Onward Technologies, Privi Speciality Chemicals, QGO Finance, Reliance Infrastructure, Rossari Biotech, Sagarsoft (India), Saint-Gobain Sekurit India, SKF India, Surbhi Industries, Texmaco Infrastructure, Vimta Labs, and Welspun India will release their quarterly results on May 14.
Results on May 15: Aarti Drugs, AYM Syntex, Bhageria Industries, Chembond Chemicals, Cheviot Co, DCM Nouvelle, Faze Three Autofab, Geojit Financial Services, Indo Cotspin, IRB InvIT Fund, Jayant Agro-Organics, Jindal Capital, Kansal Fibres, Kirloskar Industries, Kriti Industries, Kriti Nutrients, Mangalore Chemicals & Fertilizers, Mayur Floorings, Quick Heal Technologies, Ramkrishna Forgings, Tasty Bite Eatables, Trident, Udaipur Cement Works, and ZF Steering Gear (India) will announce their quarterly earnings on May 15.
Stocks in News
UPL: The company reported higher consolidated profit at Rs 1,361 crore in Q4FY21 against Rs 784 crore in Q4FY20, revenue rose to Rs 12,796 crore from Rs 11,141 crore YoY.
Jindal Steel & Power: The company reported consolidated profit at Rs 2,139.28 crore for Q4FY21 against Rs 305.62 crore in Q4FY20, revenue jumped to Rs 11,880.61 crore from Rs 6,795.18 crore YoY.
Pidilite Industries: The company reported a sharp rise in consolidated profit at Rs 307.44 crore in Q4FY21 against Rs 156.51 crore in Q4FY20, revenue rose to Rs 2,235.52 crore from Rs 1,544.68 crore YoY.
KCP: CRISIL upgraded long-term credit rating to A/Stable, from A-/Stable, and short term credit rating to A1 from A2+.
Apollo Tyres: The company reported higher consolidated profit at Rs 287.3 crore in Q4FY21 against Rs 77.86 crore in Q4FY20, revenue climbed to Rs 5,025.7 crore from Rs 3,615.57 crore YoY.
Hindalco Industries: Subsidiary Novelis' Q4 net income from continuing operations at $180 million increased 186% YoY; net sales increased 33% over the prior year to $3.6 billion in Q4FY21.
Fund flow
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,260.59 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 704.36 crore in the Indian equity market on May 12, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Five stocks - BHEL, Cadila Healthcare, Canara Bank, Punjab National Bank and Sun TV Network - are under the F&O ban for May 14. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
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